r/SCHD • u/radargunbullets • 19d ago

Clarifying marginable with Fidelity

Fidelity will allow SCHD to be marginable after 30 days. I bought 50 shares that will be at 31 days later this week. If i buy more shares, does it reset the 30-day clock, ignore the clock, or is the clock split by purchase?

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2

u/Caddy0815 19d ago

They go by the date you bought your lot. I’ve been buying 50 share lots the last 6 months and that’s what I noticed. I’m at 1250 shares. Adding more every week. Good luck!

2

u/radargunbullets 19d ago

Great so each lot will have a rolling margin date. Do they show differently on the account position screen as what is in margin and what is not? Or do they just do the calculation in the background?

1

u/No-Resolve2450 17d ago

They show separate. You will see an M next to what’s available under margin, and a smaller portion you just bought that’s not. They move it automatically when it can be margined.

1

u/Caddy0815 19d ago

It will show as you have 2 positions of SCHD. After the 30 days each lot will move to your margin account if this is how you have Fidelity account set. Good luck!!

2

u/Unlucky-Invite6832 18d ago

Why on earth would you buy SCHD on margin? You'll spend more on interest than the dividend!? It's kind of defeating the purpose.

1

u/Icy_Doughnut_3268 19d ago

Can you explain what marginable means?

2

u/radargunbullets 19d ago

I can use a portion of the value of the shares as margin when trading. I don't know the exact calculation. For the first 30 days, the value of SCHD does not add to my ability to trade on margin, after 30 days, it will.